Inflation at 4-month high in Feb, Industrial growth slows down to 1.7%
New Delhi, Mar 12: Retail inflation inched up to a four-month high of 2.57 per cent in February, though it is still below the RBI's benchmark, raising hopes of another round of rate cut in April to boost industrial growth which slipped to 1.7 per cent on account of manufacturing sector slowdown.
According to the data released by the Central Statistics Office (CSO), the Index of Industrial Production (IIP) expanded by just 1.7 per cent in January, significantly down from 7.5 per cent growth in the year-ago month.
The CSO, however, revised marginally upwards the IIP growth number for December 2018 to 2.6 per cent from the earlier estimate of 2.4 per cent.
Slowdown in industrial production notwithstanding, a marginal increase in inflation raised the clamour for another round of rate cut by the Reserve Bank on April 4 to boost economic activity. The central bank had reduced the key lending rate (repo) by 25 basis points in February.
Following the RBI rate cut, many banks announced up to 10 basis point reduction in their lending rates.
Another set of data released by CSO showed that retail inflation based on Consumer Price Index (CPI) inched up mainly due to firming up of food prices.
Though Headline (inflation) is showing an increase, the core CPI component moderated again to 5.3 per cent in February 2019 from January 2019 level of 5.36 per cent, the country's largest bank SBI said in a research report.
The retail inflation number for February 2019 is the highest since October 2018 when it stood at 3.38 per cent, the data released by the Central Statistics Office under the Ministry of Statistics and Programme Implementation (MoSPI) showed.
On monthly basis, consumer food price index moved up by 0.15 per cent in February against January 2019.
Food inflation was lower at (-) 0.66 per cent in February against 3.26 per cent in the same month last year. The retail inflation in February 2018 was at 4.44 per cent.
In fuel and light category, the rate of price rise slowed to 1.24 per cent from 2.20 per cent in January.
On IIP, SBI said the numbers are disappointing.
The growth rate of manufacturing sector dropped sharply to 1.3 per cent in January from 8.7 per cent in January 2018. There was also slump in the power generation segment as the expansion was almost flat at 0.8 per cent compared to 7.6 per cent in the year-ago month.
However, the silver lining was the mining sector which grew by 3.9 per cent in January this year compared to 0.3 per cent in the year-ago period.
Giving more details about the factory output in the country, the CSO said capital goods segments, considered to be barometer of investment, and the intermediate goods segment witnessed a contraction.
Data also revealed that both growth in production of consumer durable and non-durable goods grew at a slower rate in January compared to the year-ago period.
The IIP growth during April-January period of the current fiscal stood at 4.4 per cent compared to 4.1 per cent in the same time frame a year ago.
Commenting on the data, B Prasanna, Head, Global Markets Group, ICICI Bank said industrial growth dipped below expectations in January 2019, with manufacturing and electricity sectors decelerating considerably.
On monetary policy, Prasanna said: "We expect another rate cut in the April meeting and subsequent action would be data dependent."
Ranen Banerjee of PwC India opined that lower IIP numbers and inflation of slightly over 2.5 per cent give headroom for further monetary policy action by the central bank.
RBL Bank Economist Rajni Thakur also suggested that the latest CSO data calls for a rate cut.
"...there clearly is a case and space for one more rate cut of 25 bps by RBI in April to support growth," she said.
The six-member Monetary Policy Committee (MPC) of the RBI will meet for three days and announce the first bi-monthly monetary policy of the next fiscal on April 4.
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Over 22 per cent polling in 14 LS seats in Karnataka till 11 am
Bengaluru (PTI): An estimated 22.34 per cent voter turnout was recorded till 11 am during the first phase of Lok Sabha polls in 14 constituencies in Karnataka on Friday.
Long queues were seen at many polling booths, as people, especially senior citizens and morning walkers, came out to vote during the early hours of the voting, which began at 7 am.
According to election officials, the voter percentage till 11 am was about 22.34 per cent.
Out of 14 segments that are going to polls today, highest turnout of 30.98 per cent was recorded in Dakshina Kannada, followed by Udupi-Chikmagalur 29.03 per cent, and the least 19.21 per cent in Bangalore Central.
The turnout was 19.81 per cent in Bangalore South, and 19.78 per cent in Bangalore North.
In the first phase, the Congress is contesting in all 14 seats, BJP has fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance in (NDA) in September last year, in three -- Hassan, Mandya and Kolar.
Besides the three, the segments where elections are being held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.
In the 2019 Lok Sabha polls, Congress and JD(S), which were in alliance and ruling the state back then, had secured just one seat each in these 14 segments. The BJP had won in 11 and ensured the victory of a party supported independent candidate in Mandya.
Meanwhile, former Prime Minister and JD(S) patriarch H D Deve Gowda along with wife Chennamma exercised their franchise at Paduvalahippe village in Hassan district, while his son and former CM H D Kumaraswamy along with wife Anitha and son Nikhil cast vote at Kethaganahalli in Ramanagara district.
Chief Minister Siddaramaiah voted at his native village Siddaramanahundi in Mysuru district.
RSS Sarakaryavah Dattatreya Hosabale cast his ballot at Sheshadripuram in Bengaluru.
Rajya Sabha member and 'Dharmadhikari' of the Dharmasthala, Veerendra Heggade, Vishwaprasanna Teertha Swamiji of the Pejavara Mutt, Shivarathri Deshikendra Mahaswamiji of Sri Suttur Math,and Nirmalanandanatha Mahaswamiji of Adichunchanagiri Mahasamsthana Math, were among the early voters.
Bangalore South MP and candidate Tejasvi Surya, Hassan candidate and MP Prajwal Revanna, also several film personalities including actor Ravichandran, Ashwini Puneeth Rajkumar, Raghavendra Rajkumar, Duniya Vijay and Dhananjay also exercised their democratic right.
According to officials, 101-year-old Narayana Rao and his wife Lakshmi, aged 92, voted in Bengaluru's Padmanabhanagar.
In separate incidents, two brides -- one each from Chikkamagaluru and Madikeri -- dressed in their wedding attire exercised her franchise before reaching the marriage venue in the morning. A groom cast his vote in Chamarajanagar district before rushing to tie the nuptial knot.
